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Anti Hero Capital: A Crypto Fund Investing Using Evolutionary Science

Anti Hero Capital is a fund investing in crypto assets and digital currencies using evolutionary science

MELBOURNE, Australia, April 4, 2018 /PRNewswire/ — The founders of one of Australia’s first managed investment funds dedicated entirely to cryptocurrencies, the Anti Hero Capital Fund (Fund), believe that a quantitative application of evolutionary science can unveil stable returns from this burgeoning asset class.

The investment manager, Anti Hero Capital Pty Ltd (Anti Hero Capital), is seeking to raise $30 million dollars for the Fund from wholesale investors, providing them with actively managed exposure to the global suite of digital currencies.

Matthew Snowden and James Nguyen (PRNewsfoto/Anti Hero Capital)

The Fund, of which Anti Hero Capital is investment manager, uses a quantitative approach based on evolutionary science to determine which cryptocurrency tokens have the highest potential for rapid growth.

Co-founder James Nguyen said cryptocurrencies could be the fastest growing asset class of the century.

“Cryptocurrencies are an entirely new asset class that is uncorrelated to traditional markets, with huge growth and diversification potential,” Mr Nguyen said.

“In 2017, the total market capitalisation of the cryptocurrency industry grew by 3,300 per cent from $18 billion to $610 billion USD. In comparison, the S&P 500 index only increased by 26 per cent over the same period.

“Still, there has been a lot of confusion and negative market sentiment around this asset class. We’ve seen the accelerated appreciation and decline of Bitcoin in recent months, with such volatility impacting overall market sentiment.

“However, the Bitcoin boom was the product of collective speculation and a lack of technical knowledge of the underlying asset — many investors were merely following an investment trend. We’re intentional in delineating that noise from true signal, which shows that the most notable trend over the past 12 months has been the dramatic appreciation of digital currencies other than Bitcoin. In 2017, the best performing crypto investments were not recognised as the market’s top currencies at the start of the year.”

To illustrate, a portfolio on 1 January 2017 of $100,000, equally distributed across ten alternative coins (eg: Ripple, NEM, Ardor, Stellar, Dash etc) would have returned $13,700,000 by December 31, 2017. An identical portfolio holding $100,000 of Bitcoin would have returned only $1,378,000 in the same period.

Despite the rapid growth experienced by many retail Bitcoin investors late last year, the identification of and successful investment in cryptocurrencies is difficult without technical proficiency and the full returns of the asset class are rarely captured.

“The issue is that traditional investors don’t have the technical expertise to be able to identify the high potential coins that exist in this market. There’s a significant knowledge gap here because distinguishing truly value creating coins, among the 1,500+ cryptocurrencies that currently exist, is challenging for an everyday investor.

“We’re addressing this knowledge gap in the market with the Anti Hero Capital Fund, using our expertise in cryptoeconomics, blockchain and technology to identify promising cryptocurrencies, many of which aren’t yet in the scope of most investors,” said Mr Nguyen.

The Fund will primarily aim to deliver growth and diversification benefits to wholesale and sophisticated investors. A focus on deep analysis of strong qualitative and quantitative data will flag signals of growth potential in cryptocurrencies prior to mainstream awareness.

“Our methodology will focus exclusively on cryptocurrencies, which will afford a unique combination of liquidity and accessibility to our investments. Compared to other early stage investments, which require a liquidity event to realise profit, the only prerequisite for our investors to realise a return is the appreciation of the token’s value,” said Mr Nguyen.

Evolutionary scientific approach

The Anti Hero Capital Fund will be one of the first investment funds in the world to implement a quantitative investment strategy based on “Darwinistic” evolutionary science.

“There are a number of similarities between the characteristics of cryptocurrencies built on blockchain technology and that of evolutionary networks in nature – such as honeybees and ants.”

“Anti Hero Capital’s proprietary algorithm meticulously analyses all cryptocurrencies through an evolutionary lens, prior to their mainstream awareness, to identify the coins that show similarities to proven decentralised systems in nature.

“This data driven and industry tested approach identifies tokens worth investing in that are largely inoculated against volatility and broader macro trends – and these are often the ones that are overlooked or not yet recognised by the wider public,” said Mr Nguyen.

a-portfolio-on-1-january-2017-of.jpg A portfolio on 1 January 2017 of $100,000, equally distributed across ten alternative coins
To illustrate, a portfolio on 1 January 2017 of $100,000, equally distributed across ten alternative coins (eg: Ripple, NEM, Ardor, Stellar, Dash etc) would have returned $13,700,000 by December 31, 2017. An identical portfolio holding $100,000 of Bitcoin would have returned only $1,378,000 in the same period.